Budget 1999: Enlightened Help for Entrepreneurs
Smith, Andreas Whittam, The Independent (London, England)
JUDGE NOT the Budget's help for entrepreneurs by the Chancellor's rhetoric, but by the life cycle of business creators. Does the support come in ways that will really assist nascent enterprises? The budding entrepreneur needs funds, skilled staff and time. To what extent do Gordon Brown's measures increase the supply of these essential commodities?
As to borrowing, governments have never been able to do much about a problem which - without a business record or security which can be pledged - the high-street banks do not do much to help tackle in terms of loans. The Government can, however, encourage the provision of risk capital. The measure that most obviously tends to this need is the extra money which the Government is to put into venture capital funds for companies starting up in high-technology fields.
Other measures are significant in an indirect way. Cutting capital gains tax may increase the willingness of investors to support new entrepreneurs. Reducing the impact of inheritance taxes, albeit marginally, has the same effect. Providing loan guarantees through the new Small Business Service will also facilitate the raising of capital. For entrepreneurs I put these aspects of the Budget first, because the initial stages of a company's development, before it is profitable and in a position to pay tax, are the most difficult. Inevitably, Mr Brown has been able to give the more definite help to new companies that have moved into …
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Publication information: Article title: Budget 1999: Enlightened Help for Entrepreneurs. Contributors: Smith, Andreas Whittam - Author. Newspaper title: The Independent (London, England). Publication date: March 1, 1999. Page number: 10. © 2009 The Independent - London. Provided by ProQuest LLC. All Rights Reserved.
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